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Amazon PPC Campaign Margin Erosion from Retail Arbitrage Sellers
Description
Episode 104 of Performance Marketing with Fexingo. Lucas and Luna uncover a blind spot most Amazon sellers overlook: margin erosion caused by retail arbitrage sellers bidding on your branded keywords. They walk through how arbitrage competitors exploit high-intent search terms, raising your cost-per-click and diluting your ACOS. Using a concrete example from the supplement category, they show why your branded campaign ACOS can creep up 15-20% without any change in your own strategy. Lucas shares a three-step defense: monitor your brand term impression share daily, layer in negative phrase match for 'wholesale' 'bulk' 'cheap' variants, and set a hard bid cap on branded campaigns tied to your margin floor. Luna pushes back on whether this creates a ceiling on volume, leading to a nuanced take on trade-offs. Practical, tactical, and specific — for sellers running Amazon PPC daily.